Applying for Credit
by sas_upena
It is a necessary evil. If and when you decide to buy a house, you will have to have a track record of good credit for a number of years. And with all the sub-prime mortgage loans going under, mortgage bankers are scrutinizing applications with a fine tooth comb.
If you have never had a credit card, get a secured card - meaning you have to deposit the money first and then you will be able to access it. Make some small purchases, pay on time, and add some more money to you account. Once you have done this for at least a year, apply for a 'regular" credit card. Don't worry about the size of the limit. It may only be for a few hundred dollars.
Continue to make small purchases and pay on time. You can even pay the minimum amount once in a while. Just don't make any late payments. Doing this will establish a pattern of on-time payments. Once you have created this history of making your payments on-time, you will find it easier to apply for that home loan.
Applying for credit used to mean asking your neighborhood banker for a loan. Now, with national credit cards and computerized applications, the day of personal evaluations may be over. Instead, computer evaluations look at, among other things, your income, payment history, credit card accounts, and any outstanding balances. Paying in cash and in full may be sound financial advice, but they won't give you a payment history that helps you get credit.
A major indicator of your ability to repay a loan is your current income. Those who consider income must include types of income that are likely to be received by older consumers. This includes salaries from part-time employment, Social Security, pensions, and other retirement benefits. You also may want to tell creditors about assets or other sources of income, such as your home, additional real estate, savings and checking accounts, money market funds, certificates of deposit, and stocks and bonds.
If you're age 62 or over, you have certain other protections. You can't be denied credit because credit-related insurance is not available based on your age. Credit insurance pays off the creditor if you should die or become disabled.
On the other hand, a creditor can consider your age to: * favor applicants who are age 62 or older.
* determine other elements of creditworthiness. For example, a creditor could consider whether you're close to retirement age and a lower income.
While a creditor cannot take your age directly into account, a creditor may consider age as it relates to certain elements of creditworthiness. If, for example, at the age of 70, you apply for a 30-year mortgage, a lender might be concerned that you may not live to repay the loan. However, if you apply for a shorter loan term, increase your down payment, or do both, you might satisfy the creditor's concerns.
Monday, March 2, 2009
Financing with Business Credit Cards
Financing with Business Credit Cards
by Debbie Dragon
You've heard the saying, "You've got to spend money to make money!" This couldn't be more true, especially in business. If you want to grow your business, you're going to need a source of funds and access to cash flow - particularly when things are moving slowly.
At one time, owners of businesses had to get business credit against the things that they owned personally and based on their personal credit score. This is a major liability because if your business doesn't make it, you could lose your personal assets, too! Thankfully, there are now ways to obtain business credit that is not just an extension of what you owe personally.
If you set the business up as an official entity- separate from yourself, you can apply for various business funding, including loans or credit cards. When a business is just starting out, it hasn't had the opportunity to establish it's own credit rating yet and so lenders will have to use your personal credit report to determine the level of risk in lending to a business you own. What happens if your personal credit score is not-so-good?
You can take some steps to increase your chances of getting a business credit card (or some other form of business funding) by doing the following:
* Take steps to increase your personal score. Before you go any further looking for business credit cards or other sources of funding, do you know what your score is? Is your credit score below 640? If it is, it is recommended that you attempt to increase the score first. Often, making all of your payments on time for 3 consecutive months will pull your score up 2 to 4 points. Check with a financial advisor for some ways of increasing your credit score as it will only serve to help you personally as well as in business.
* Create an LLC or Corporation. This type of business structure automatically means the business is separate, and not just an extension of you. If you are operating a business under your name, and have not filed any official paperwork with the government or with lawyers and accountants- your business finances are no different than your personal finances.
* Have a physical address. Believe it or not, using a PO Box can hinder your ability to get a business credit card or loan! If you operate out of your home, you might consider getting a business mailbox from Mailboxes Etc, or UPS, as both offer a physical mailing address rather than a PO Box. Having a business phone line also will increase the way the business is looked at by lenders, and ensures the business is reachable.
If you are still unable to obtain business credit cards or financing on your first try, perhaps you know someone with a strong credit rating who would be willing to co-sign an application for you. You may not be able to have a business application for credit co-signed, but you can as an individual. Get a credit card in your name and then use it only for the business. Be sure to make the payments on time, and keep the balance manageable. Over time, you'll build up your personal credit score, which is seen as a boost for the business validity- and eventually you'll be able to obtain funding and credit cards under the business name.
Getting business credit cards and financing is a necessity that all businesses will face from time to time. There is a need for cash flow in order to grow and increase the business. With some careful planning and preparation, most businesses will be approved for a business credit card even if the owner has personal credit that is slightly less-than-perfect.
by Debbie Dragon
You've heard the saying, "You've got to spend money to make money!" This couldn't be more true, especially in business. If you want to grow your business, you're going to need a source of funds and access to cash flow - particularly when things are moving slowly.
At one time, owners of businesses had to get business credit against the things that they owned personally and based on their personal credit score. This is a major liability because if your business doesn't make it, you could lose your personal assets, too! Thankfully, there are now ways to obtain business credit that is not just an extension of what you owe personally.
If you set the business up as an official entity- separate from yourself, you can apply for various business funding, including loans or credit cards. When a business is just starting out, it hasn't had the opportunity to establish it's own credit rating yet and so lenders will have to use your personal credit report to determine the level of risk in lending to a business you own. What happens if your personal credit score is not-so-good?
You can take some steps to increase your chances of getting a business credit card (or some other form of business funding) by doing the following:
* Take steps to increase your personal score. Before you go any further looking for business credit cards or other sources of funding, do you know what your score is? Is your credit score below 640? If it is, it is recommended that you attempt to increase the score first. Often, making all of your payments on time for 3 consecutive months will pull your score up 2 to 4 points. Check with a financial advisor for some ways of increasing your credit score as it will only serve to help you personally as well as in business.
* Create an LLC or Corporation. This type of business structure automatically means the business is separate, and not just an extension of you. If you are operating a business under your name, and have not filed any official paperwork with the government or with lawyers and accountants- your business finances are no different than your personal finances.
* Have a physical address. Believe it or not, using a PO Box can hinder your ability to get a business credit card or loan! If you operate out of your home, you might consider getting a business mailbox from Mailboxes Etc, or UPS, as both offer a physical mailing address rather than a PO Box. Having a business phone line also will increase the way the business is looked at by lenders, and ensures the business is reachable.
If you are still unable to obtain business credit cards or financing on your first try, perhaps you know someone with a strong credit rating who would be willing to co-sign an application for you. You may not be able to have a business application for credit co-signed, but you can as an individual. Get a credit card in your name and then use it only for the business. Be sure to make the payments on time, and keep the balance manageable. Over time, you'll build up your personal credit score, which is seen as a boost for the business validity- and eventually you'll be able to obtain funding and credit cards under the business name.
Getting business credit cards and financing is a necessity that all businesses will face from time to time. There is a need for cash flow in order to grow and increase the business. With some careful planning and preparation, most businesses will be approved for a business credit card even if the owner has personal credit that is slightly less-than-perfect.
Use Your Unsecured Credit Card With Responsibility
Use Your Unsecured Credit Card With Responsibility
by Mike Selvon
As anyone can attest, the need for a good credit score rules the world. Credit is used to determine interest rates on loans, whether or not you can have an apartment or house to rent and can even dictate whether or not you get a job.
Regardless of the debates revolving around whether or not this is a fair practice, you still need credit. For those students in need of an unsecured credit card, it can be a way to either help their credit rating or a way to damage it. Someone who is not responsible with their credit can find themselves being turned down, even when it comes to trying to obtain an education loan.
A Stafford loan does not base its requirements upon credit scores, but private college loans do. If the student has bad credit due to irresponsibility with an unsecured card, then they can find themselves being denied.
This denial can make the difference between going to school and getting an education, and not being able to attend and losing all hope of getting that job of your dreams. Many are forced to turn to a credit card for bad credit, which means paying very high interest rates and high membership fees in order to use the card.
Before that poor credit becomes a reality, you have to learn how to use your unsecured credit card responsibly. The first step is to not have numerous credit cards. You don't need a MasterCard, a Visa student card and bank credit cards! Start slowly while building your credit.
Many people start building their credit with department store credit cards that they pay off each month or keep at a very low balance. You always need to make your credit card payments on time too.
Another great tip is to always pay more than the minimum monthly payment. This ensures that the balance is being paid down. Paying just the minimum amount will result in the interest rates accumulating and you will be forced to pay longer on the balance.
You can get an unsecured credit card if you use your credit wisely. It is so easy to get into debt, but it can take years and years to overcome. Be responsible and you will be able to build your credit score.
Should the need arise and you wish to apply for a private college loan, a good rating will make it will be easier to obtain one on your own rather than being forced to find a co-signer. Use your credit card for emergencies and keep track of your spending. It will benefit you now and in the future.
by Mike Selvon
As anyone can attest, the need for a good credit score rules the world. Credit is used to determine interest rates on loans, whether or not you can have an apartment or house to rent and can even dictate whether or not you get a job.
Regardless of the debates revolving around whether or not this is a fair practice, you still need credit. For those students in need of an unsecured credit card, it can be a way to either help their credit rating or a way to damage it. Someone who is not responsible with their credit can find themselves being turned down, even when it comes to trying to obtain an education loan.
A Stafford loan does not base its requirements upon credit scores, but private college loans do. If the student has bad credit due to irresponsibility with an unsecured card, then they can find themselves being denied.
This denial can make the difference between going to school and getting an education, and not being able to attend and losing all hope of getting that job of your dreams. Many are forced to turn to a credit card for bad credit, which means paying very high interest rates and high membership fees in order to use the card.
Before that poor credit becomes a reality, you have to learn how to use your unsecured credit card responsibly. The first step is to not have numerous credit cards. You don't need a MasterCard, a Visa student card and bank credit cards! Start slowly while building your credit.
Many people start building their credit with department store credit cards that they pay off each month or keep at a very low balance. You always need to make your credit card payments on time too.
Another great tip is to always pay more than the minimum monthly payment. This ensures that the balance is being paid down. Paying just the minimum amount will result in the interest rates accumulating and you will be forced to pay longer on the balance.
You can get an unsecured credit card if you use your credit wisely. It is so easy to get into debt, but it can take years and years to overcome. Be responsible and you will be able to build your credit score.
Should the need arise and you wish to apply for a private college loan, a good rating will make it will be easier to obtain one on your own rather than being forced to find a co-signer. Use your credit card for emergencies and keep track of your spending. It will benefit you now and in the future.
The Ultimate Credit Restoration Guide Brings Hope For Fast Credit Repair
The Ultimate Credit Restoration Guide Brings Hope For Fast Credit Repair
by Paul Johnson
One of the coolest things that consumers now have complete control over in the age of fast credit repair is the fact that they can prohibit the sharing of information by credit affiliates. This is any information about you that would inevitably be used for marketing purposes. This means essentially, that you can stop some of those unsolicited credit card offers that you see in the mail. You can do this by going to www.optoutprescreen.com to fill out an electronic form to stop these offers from ever reaching you.
How does this actually help your credit you might ask? There is a really enlightening explanation for this that I'll cover here. Many times loan officers will deny loan programs to otherwise worthy borrowers because they fall short; many times the borrower will be short a mere 10 or even 5 FICO points and will consequently be rejected for loan approval because they barely missed the mathematical range! Flashback to about 8 years ago when I had recently graduated from college in Business Information Systems; I had applied for a mortgage when my credit was a bit on the poor side. I believe my score was around 500 at the time, and the lending company I had contacted for the initial loan application didn't even call me back, ever! I was waiting for 2 weeks wondering what had happened and if I needed to re-mail my loan application to them. Another week went by and still no phone call! I literally was stopped in my tracks time after time, application after application with no such luck after multiple attempts with different loan companies.
Now flash forward to 2007, whenever I visit mortgage companies working with real estate investors, I see those same type of applications heaped together, haphazardly in a pile on the floor or in some loan officer's ignored file cabinet somewhere. I decided a few years ago that I wanted to make sure that there was an opportunity for those people who ended up in that pile like I did, if they wanted to and could use the information to re-build their credit effectively, that there would be real hope for them. I learned long ago via the hard way that it doesn't take 7 years as I'd previously thought to restore my credit. I had thought that I needed to wait 7 years until everything bad would drop off, not use any credit during that time, and then slowly start re-building my credit lines by the end of the 7 year period (this is really what I thought!). This is one way of doing it I suppose but that method turns out to be a 9 year plan at best to see real results. Think that's too long to wait to get your credit back up to par? Well, so do I and fortunately I have learned that if you don't want to wait that long than there's a much quicker way to go about building your credit in a short amount of time.
What I would suggest is that if you are in a hurry to get a loan, you can use the optoutprescreen.com option and utilize their 5 year electronic Optout if you need to repull or re-score your credit with a current lender to quickly give your credit score a high octane boost. There is also a permanent option found on their site and if you're not under any time constraints, you can print this out, sign it and mail it in to be permanently taken off the credit card offer solicitation list. Although the permanent Optout option takes longer to submit since it's not electronic, it provides the greatest boost to your credit score in a relatively short amount of time.
The 5 year and permanent Optout options will not stop any affiliate bank offers from reaching your mailbox, however, since they are marketed through institutions that you are already doing business with outside of the credit bureaus. For example, if you have an account through Bank of America, and do the Optout, BOA or any of their financial affiliates will still be able to send you offers for their credit cards since you do business with them.
So what does the Optout actually do for you? A lot actually.. The Optout will prevent all credit bureaus from being able to sell your information to other credit card companies which is where the majority of these offers originate from in the first place. The Optout also greatly reduces identity theft since it eliminates a lot of unwanted mail from floating around with your personal information on it. One of the greatest things the Optout does that most people don't realize, even though it says on their website that "these inquiries from the credit bureaus do not hurt your credit", which is true; yet in about 60% of cases, this Optout will actually boost the client's credit score anywhere from 5-30 points! This is why I love to tell loan officers about this, because if they have a client who is only a couple points away from a program, they can opt them out (with the client's permission) or have the client opt themselves out with the website, wait about 10 business days, repull credit and in about 60% of the cases they'll get an immediate 5-30 point FICO score increase! This is huge because even a couple of points can be the determining factor to whether someone can qualify for a mortgage program or not.
By utilizing this simple tip, I've been able to help dozens of investors recently to boost their credit score into a qualified range enough to get them the loans they wanted and really needed to make their investment vehicle worthwhile. For the life of the loan, this locks many of them into a much lower rate that literally will save them many thousands of dollars from the loan they would've received (or not received) had they not boosted their credit score within the 2 or 3 week period before their credit was re-pulled.
Oh, how I wish I would have known about this a few years ago when I finally qualified for my first investment property! How about 8 years ago when my first loan application ended up in a chaotic pile somewhere on some indifferent loan officer's desk. This is why I ended up doing a lot more research with regards to fast credit repair and helped put together an entire Ebook dedicated to this subject. This book is literally filled with the most effective tips and strategies that are currently being used by savvy investors and loan officers to boost their client's FICO scores through the roof. You can get a copy of the "Ultimate Credit Restoration" Ebook through our website found at UltimateCreditRestoration.com to learn more about the best credit restoration secrets that we've discovered in 2007 to help you not only restore your credit but ultimately enhance the quality of your life for 2008 and beyond...
by Paul Johnson
One of the coolest things that consumers now have complete control over in the age of fast credit repair is the fact that they can prohibit the sharing of information by credit affiliates. This is any information about you that would inevitably be used for marketing purposes. This means essentially, that you can stop some of those unsolicited credit card offers that you see in the mail. You can do this by going to www.optoutprescreen.com to fill out an electronic form to stop these offers from ever reaching you.
How does this actually help your credit you might ask? There is a really enlightening explanation for this that I'll cover here. Many times loan officers will deny loan programs to otherwise worthy borrowers because they fall short; many times the borrower will be short a mere 10 or even 5 FICO points and will consequently be rejected for loan approval because they barely missed the mathematical range! Flashback to about 8 years ago when I had recently graduated from college in Business Information Systems; I had applied for a mortgage when my credit was a bit on the poor side. I believe my score was around 500 at the time, and the lending company I had contacted for the initial loan application didn't even call me back, ever! I was waiting for 2 weeks wondering what had happened and if I needed to re-mail my loan application to them. Another week went by and still no phone call! I literally was stopped in my tracks time after time, application after application with no such luck after multiple attempts with different loan companies.
Now flash forward to 2007, whenever I visit mortgage companies working with real estate investors, I see those same type of applications heaped together, haphazardly in a pile on the floor or in some loan officer's ignored file cabinet somewhere. I decided a few years ago that I wanted to make sure that there was an opportunity for those people who ended up in that pile like I did, if they wanted to and could use the information to re-build their credit effectively, that there would be real hope for them. I learned long ago via the hard way that it doesn't take 7 years as I'd previously thought to restore my credit. I had thought that I needed to wait 7 years until everything bad would drop off, not use any credit during that time, and then slowly start re-building my credit lines by the end of the 7 year period (this is really what I thought!). This is one way of doing it I suppose but that method turns out to be a 9 year plan at best to see real results. Think that's too long to wait to get your credit back up to par? Well, so do I and fortunately I have learned that if you don't want to wait that long than there's a much quicker way to go about building your credit in a short amount of time.
What I would suggest is that if you are in a hurry to get a loan, you can use the optoutprescreen.com option and utilize their 5 year electronic Optout if you need to repull or re-score your credit with a current lender to quickly give your credit score a high octane boost. There is also a permanent option found on their site and if you're not under any time constraints, you can print this out, sign it and mail it in to be permanently taken off the credit card offer solicitation list. Although the permanent Optout option takes longer to submit since it's not electronic, it provides the greatest boost to your credit score in a relatively short amount of time.
The 5 year and permanent Optout options will not stop any affiliate bank offers from reaching your mailbox, however, since they are marketed through institutions that you are already doing business with outside of the credit bureaus. For example, if you have an account through Bank of America, and do the Optout, BOA or any of their financial affiliates will still be able to send you offers for their credit cards since you do business with them.
So what does the Optout actually do for you? A lot actually.. The Optout will prevent all credit bureaus from being able to sell your information to other credit card companies which is where the majority of these offers originate from in the first place. The Optout also greatly reduces identity theft since it eliminates a lot of unwanted mail from floating around with your personal information on it. One of the greatest things the Optout does that most people don't realize, even though it says on their website that "these inquiries from the credit bureaus do not hurt your credit", which is true; yet in about 60% of cases, this Optout will actually boost the client's credit score anywhere from 5-30 points! This is why I love to tell loan officers about this, because if they have a client who is only a couple points away from a program, they can opt them out (with the client's permission) or have the client opt themselves out with the website, wait about 10 business days, repull credit and in about 60% of the cases they'll get an immediate 5-30 point FICO score increase! This is huge because even a couple of points can be the determining factor to whether someone can qualify for a mortgage program or not.
By utilizing this simple tip, I've been able to help dozens of investors recently to boost their credit score into a qualified range enough to get them the loans they wanted and really needed to make their investment vehicle worthwhile. For the life of the loan, this locks many of them into a much lower rate that literally will save them many thousands of dollars from the loan they would've received (or not received) had they not boosted their credit score within the 2 or 3 week period before their credit was re-pulled.
Oh, how I wish I would have known about this a few years ago when I finally qualified for my first investment property! How about 8 years ago when my first loan application ended up in a chaotic pile somewhere on some indifferent loan officer's desk. This is why I ended up doing a lot more research with regards to fast credit repair and helped put together an entire Ebook dedicated to this subject. This book is literally filled with the most effective tips and strategies that are currently being used by savvy investors and loan officers to boost their client's FICO scores through the roof. You can get a copy of the "Ultimate Credit Restoration" Ebook through our website found at UltimateCreditRestoration.com to learn more about the best credit restoration secrets that we've discovered in 2007 to help you not only restore your credit but ultimately enhance the quality of your life for 2008 and beyond...
Credit Card Offers - Small Business Credit Cards
Credit Card Offers - Small Business Credit Cards
by Thomas Rockwood
Small business credit cards are credit instruments that cater specifically to the needs of small businesses. They are like your normal credit card except for some changes in interest rates and features which are optimized for use by small businesses. They are very useful for small businesses that desire to streamline their finances and access extra credit.
The numbers of small businesses that use these cards are ever-growing. A recent report shows that 66% of small businesses use these cards for purchasing and financing. Forty percent of this number use their exclusively use credit cards for their payments. But why should a business apply for one? Are there any benefits that merit application for such a card? There are many advantages. Some of them will be outlined below.
For one, these cards allow a business to get hold of good credit. Good credit is the use of borrowed finances to generate more cash. In effect, the act of borrowing actually results in the company earning more. A small business credit card allows for this. The business then is able to keep hold of finances for other reasons: investing for interest, for profit, or other needs the business may have for cold cash. They can pay in easy installments that will not dent the financial capability of the business. They can also pay when they are capable of paying.
Another advantage of using small business credit cards is the fact that they help make bookkeeping easier. Instead of keeping a journal of all transactions and receipts, one can have the credit card company send an itemized list of purchases made using their credit card. This allows for better bookkeeping and better accounting. Lost receipts and undocumented expenses can be avoided. This helps the business make more accurate financial reports.
Small business credit cards also allow businesses to build up their credit limit. Small businesses will typically need capital for new equipment, or to expand their business. A good credit limit will allow small business to access credit that would otherwise be inaccessible to small businesses. Bigger capital opens up the possibility of greater profits.
These cards also offer the option of limiting one business's spending. This would be very useful for a business that is keeping a tight watch over its finances.
Small business cards are quickly becoming an efficient way to increase buying power and capital. With these advantages, it may soon be that small businesses will regard these small business credit cards as a necessity.
by Thomas Rockwood
Small business credit cards are credit instruments that cater specifically to the needs of small businesses. They are like your normal credit card except for some changes in interest rates and features which are optimized for use by small businesses. They are very useful for small businesses that desire to streamline their finances and access extra credit.
The numbers of small businesses that use these cards are ever-growing. A recent report shows that 66% of small businesses use these cards for purchasing and financing. Forty percent of this number use their exclusively use credit cards for their payments. But why should a business apply for one? Are there any benefits that merit application for such a card? There are many advantages. Some of them will be outlined below.
For one, these cards allow a business to get hold of good credit. Good credit is the use of borrowed finances to generate more cash. In effect, the act of borrowing actually results in the company earning more. A small business credit card allows for this. The business then is able to keep hold of finances for other reasons: investing for interest, for profit, or other needs the business may have for cold cash. They can pay in easy installments that will not dent the financial capability of the business. They can also pay when they are capable of paying.
Another advantage of using small business credit cards is the fact that they help make bookkeeping easier. Instead of keeping a journal of all transactions and receipts, one can have the credit card company send an itemized list of purchases made using their credit card. This allows for better bookkeeping and better accounting. Lost receipts and undocumented expenses can be avoided. This helps the business make more accurate financial reports.
Small business credit cards also allow businesses to build up their credit limit. Small businesses will typically need capital for new equipment, or to expand their business. A good credit limit will allow small business to access credit that would otherwise be inaccessible to small businesses. Bigger capital opens up the possibility of greater profits.
These cards also offer the option of limiting one business's spending. This would be very useful for a business that is keeping a tight watch over its finances.
Small business cards are quickly becoming an efficient way to increase buying power and capital. With these advantages, it may soon be that small businesses will regard these small business credit cards as a necessity.
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